Funding a program as capital and operating are two different financial approaches, each with its own implications.
Question:
Funding a program as capital and operating are two different financial approaches, each with its own implications. Capital Funding: This refers to the money invested for long-term use in a program. It is typically used for acquiring assets, such as buildings, machinery, or equipment, which will be used over a long period of time. These assets are expected to generate value for the program over their useful life. The cost of these assets is not fully expensed in the year of purchase but is depreciated or amortized over the expected life of the asset.Operating Funding: This refers to the money used for day-to-day operations of a program. These are the costs that are incurred regularly and are necessary for the program's functioning. Examples include salaries, rent, utilities, and supplies. These costs are fully expensed in the year they are incurred. Can you help me rewrite in simpler way:
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr